Open Business in Monaco, Opening Monaco Business
Open a Business in MonacoUpdated on Wednesday 27th May 2015
How easy is it to set up a business in Monaco?
The process of establishing a business in Monaco may seem complicated, due to the procedures which have to be completed before starting to operate any commercial activities. For instance the following categories must apply for a license to practice: the foreign nationals who wish to pursue an activity in its own name, natural or legal persons of foreign nationality who wish to be associated with a SNC, SCS Ltd, individuals of foreign nationality, who want to be a manager not associated SARL, people who want to create a SAM or SCA regardless of the nationality of the founders, the individuals with Monegasque nationality who want to create an activity where access is subject to authorization.
Once authorization is obtained or the receipt of the Monegasque statement issued, the newly formed entity must make the disclosure formalities and register the company in the Directory of Trade and Industry, register for Monegasque Institute for Statistics and Economic Studies for allocation of an identification used for statistical classifications and official number, declare the existence of the company or the company with the Tax Department and join social organizations: Health Insurance, Accident and Maternity Independent Workers and Pensions Funds.
How easy is it to hire personnel in Monaco?
Any new employer who wishes to recruit Principality staff must be registered at the Department of Employment and join social organizations. Any offer of employment must be reported to the Employment Service. There are certain categories of individuals with priority in the hiring process: the Monaco citizens, children or spouses of Monaco, the inhabitants of the neighboring towns who have already been employed in Monaco. Within 4 calendar days after the filing the details of the job, the Employment Service sends a list with the priority candidates to match the post. If during these four days no candidate has contacted the company or no candidate is selected, a candidate of the employer’s choice can be hired.
The employer must submit to the Department of Employment a filled form called "Application for hiring and work permit" accompanied € 5 stamp duties. The employee then obtained a work permit, a license to the compensation fund social services and the independent fund pensions.
What are the main points of interest for foreign investors?
With 37 fully-fledged banks, and more than 42 companies handling the management of funds, the banking sector is a major part of economic activity in the Principality. Although active in the fight against the laundering of dirty money, Monaco recognizes the secrecy of financial details. However the numbered accounts are prohibited this being the reason Monaco cannot be regarded as a tax heaven. Monaco derives most of its revenue from the industry, the French and Monegasque trades, services, tourism and hospitality and real estate. Contrary to popular belief, tourism is not on the first place as a source of income. The famous Monte Carlo casino contributes only less than 4% of the state budget. Industry accounts for approximately 8% of GDP in Monaco. The most developed sectors are the "chemistry-pharmacy-cosmetology" sector, the manufacturing industries of electrical and electronic equipment, plastics processing, the printing and cardboard.
What are the advantages of a holding company in Monaco?
In the Principality of Monaco, there is no notion of holding company. Also, the entrepreneurs cannot opt to buy a shelf company.